Nepal Stock Market Surges: NEPSE Index Rises by 28.73 Points Amid High Trading Volume

5th January 2026, Kathmandu

The Nepalese stock market has experienced a powerful surge in today trading session with the benchmark NEPSE index recording a substantial rise of 28.73 points to close at 2,639. This bullish momentum was characterized by broad based participation across various sectors with a vast majority of listed companies witnessing price appreciation.

NEPSE Index Rises

The positive movement in the index was accompanied by a significant spike in trading turnover which indicates a high level of liquidity and renewed interest from the investing public. As the market continues to consolidate above the 2,600 level analysts are pointing toward a growing confidence among both retail and institutional investors who are actively repositioning their portfolios to capitalize on the current upward trend.

ANALYZING THE TRADING VOLUME AND MARKET LIQUIDITY

A key highlight of today trading was the massive turnover which exceeded 6.47 billion rupees. This level of trading volume suggests that the market is not just rising on low participation but is being supported by actual demand and capital infusion. A total of 335 companies were traded throughout the day involving the exchange of over 12 million shares. Shivam Cement emerged as the top traded stock by turnover with a total transaction value of 38.69 crore rupees followed by Bandipur Cable Car and SY Panel. High turnover is often viewed as a healthy sign for a bull market as it allows for easier entry and exit for large scale investors and reflects a vibrant secondary market environment.

SECTORAL PERFORMANCE AND TOP GAINERS OF THE DAY

The market breadth remained impressively positive with 214 companies closing in the green while only 37 companies faced a decline. The rally was particularly strong in the industrial and agricultural technology sectors. Investors in companies like Sagar Distillery SY Panel Srinagar Agritech and Bandipur Cable Car enjoyed massive profits with their share prices hitting the upper circuit limit of nearly 10 percent. Ruru Hydropower also saw significant gains reflecting the ongoing investor interest in the energy sector. These gains have provided a much needed boost to the net worth of many retail investors who had been waiting for a decisive market breakout.

CHALLENGES FOR DEBENTURE HOLDERS AND MARKET LOSERS

While the equity market was largely celebratory the fixed income segment saw some minor adjustments. Holders of Standard Chartered Bank debentures were among the biggest losers of the day experiencing a price drop of approximately 2 percent. This divergence between the equity and debt markets often happens when investors shift their capital from low yield fixed income instruments into higher growth potential stocks during a bull run. It is a classic sign of increased risk appetite among market participants. Other losers were mostly confined to smaller cap stocks that had seen speculative runs in the previous sessions and were undergoing a natural price correction today.

Advertisement

DRIVERS OF THE BULLISH MOMENTUM IN 2026

Several factors are contributing to the current positive sentiment in the Nepal Stock Exchange. Improved liquidity in the banking system and a stable interest rate environment have made stock market investments more attractive compared to traditional savings accounts. Furthermore positive quarterly reports from major commercial banks and hydropower companies have provided a fundamental basis for the rising prices. Investors are also reacting to policy stability and the government’s efforts to modernize the capital market through digital integration and faster settlement processes. The combination of favorable macro conditions and strong company fundamentals is creating a fertile ground for sustained market growth.

STRATEGIC ADVICE FOR RETAIL INVESTORS

With the NEPSE index showing double digit gains analysts are advising retail investors to remain cautious and avoid the trap of herd mentality. While the current trend is positive it is essential to focus on company fundamentals such as earnings per share price to earnings ratio and the debt to equity levels. Volatility is an inherent part of the stock market and periodic profit booking sessions are expected. Diversification remains the best strategy to mitigate risk and investors are encouraged to spread their capital across different sectors like banking insurance and manufacturing rather than concentrating all their funds into high growth but high risk stocks.

THE ROLE OF TECHNOLOGY IN MARKET PARTICIPATION

The ease of trading through the TMS system and the Meroshare portal has played a significant role in increasing the daily turnover in the Nepalese market. More people from outside the Kathmandu Valley are now able to participate in the secondary market contributing to the decentralization of investment. Today’s high trading volume is a reflection of this increased accessibility. The Department of Commerce and the Securities Board of Nepal continue to work on enhancing the security of digital transactions ensuring that the growing number of investors can trade with confidence and transparency. This technological backbone is what will sustain the market high volumes in the long run.

CONCLUSION AND NEXT STEPS FOR MARKET PARTICIPANTS

In conclusion the 28.73 point rise in the NEPSE index marks a successful day for the Nepalese capital market. With turnover reaching 6.47 billion rupees the market is showing strong signs of resilience and growth. The massive profits recorded by companies like Sagar Distillery and SY Panel highlight the potential rewards for informed investors. As the index approaches its next resistance level participants should keep a close eye on daily news and regulatory announcements. For those looking to enter the market now is a good time to consult with professional brokers to identify undervalued stocks with high growth potential.

For More: NEPSE Index Rises